Terreno Realty (TRNO) Highlighted As Strong And Under The Radar Stock Of The Day

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Terreno Realty ( TRNO) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Terreno Realty as such a stock due to the following factors:

  • TRNO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • TRNO is making at least a new 3-day high.
  • TRNO has a PE ratio of 125.1.
  • TRNO is mentioned 0.58 times per day on StockTwits.
  • TRNO has not yet been mentioned on StockTwits today.
  • TRNO is currently in the upper 20% of its 1-year range.
  • TRNO is in the upper 35% of its 20-day range.
  • TRNO is in the upper 45% of its 5-day range.
  • TRNO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TRNO:

Terreno Realty Corporation engages in acquiring, owning, and operating real estate properties in Los Angeles area, northern New Jersey/New York City, San Francisco Bay area, Seattle area, Miami area, and Washington D.C./Baltimore area. The stock currently has a dividend yield of 3%. TRNO has a PE ratio of 125.1. Currently there are 3 analysts that rate Terreno Realty a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Terreno Realty has been 82,400 shares per day over the past 30 days. Terreno has a market cap of $703.6 million and is part of the financial sector and real estate industry. The stock has a beta of 0.69 and a short float of 5.8% with 6.78 days to cover. Shares are up 20.3% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Terreno Realty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • TRNO's very impressive revenue growth greatly exceeded the industry average of 13.7%. Since the same quarter one year prior, revenues leaped by 53.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TERRENO REALTY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TERRENO REALTY CORP continued to lose money by earning -$0.05 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus -$0.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 231.0% when compared to the same quarter one year prior, rising from $0.82 million to $2.72 million.
  • Net operating cash flow has significantly increased by 96.62% to $6.58 million when compared to the same quarter last year. In addition, TERRENO REALTY CORP has also vastly surpassed the industry average cash flow growth rate of -7.00%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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